The information below for Hopkins Co. will repeat in 2 other questions but the question that is asked is different. Write out the computation on a blank sheet of paper so you may possibly use parts of it for the other 2 questions.

Hopkins Co. at the end of 2014, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows:

Pretax financial income $1,500,000 Estimated litigation expense 2,000,000 Extra depreciation for taxes (3,000,000) Taxable income $ 500,000

The estimated litigation expense of $2,000,000 will be deductible in 2015 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $1,000,000 in each of the next three years. Thus one temporary difference generates a deferred tax asset and the other temporary difference generates a deferred tax liability. The income tax rate is 30% for all years.

The deferred tax asset to be recognized is:

Select one:

a. $150,000 current

b. $300,000 current

c. $600,000 current

d. $900,000 current